The Most Promising Ethereum Competitors – Identified
As the sensible guy of crypto, Ethereum has attracted lots of plaudits and fans. There’s no doubt it’s more versatile than Bitcoin and is home to far more projects. However, there are some upstarts – and in this blog, we’ll go through the most promising Ethereum competitors.
Once a plucky young upstart of the cryptocurrency world itself, Ethereum has very much cemented itself as an established player. As a result, its high price makes it potentially inaccessible if you’re a young, budding investor. So, we’ve put together three top Ethereum competitors as alternative options for you.
First, let’s take a quick look at Ethereum and spell out exactly what makes it different from Bitcoin.
Secrets of Ethereum’s success
The main difference between Ethereum and Bitcoin is that the former has a much wider variety of uses. Bitcoin acts largely as a cryptocurrency where you can hold your digital assets and make purchases.
Ethereum does that too but it’s a lot more than just a cryptocurrency. It supports a far broader range of projects and has driven a great deal of development in the crypto space. Ethereum’s blockchain is powered by the cryptocurrency, which based on a proof-of-work model, is used to pay the gas fees for the computations completed.
Some of the more popular uses on Ethereum’s blockchain are the creation of decentralised applications, the minting and issuance of non-fungible tokens (NFTs), currency exchanges and supporting marketplaces within games.
Ethereum is built on a proof-of-work model, not the most efficient way of doing things, but that’s about to change. In order to make transactions faster and reduce energy consumption, Ethereum 2.0 will be based on the proof-of-stake model.
Top Etherum competitors
While Ethereum is great and all, it’s not exactly priced at entry-level. There are other option to explore, so let’s take an in-depth look at some Ethereum competitors.
Self-styled as ‘the fastest blockchain in the world and the fastest-growing ecosystem in crypto’, Solana is just a couple of years old having completed its ICO in late May 2020.
In line with many cryptocurrencies, the price of Solana has been volatile since it became available on the market. 2021 was a strong year for SOL, shooting from around $1.50 in January to $259.24 on November 7. However, it gradually fell to s it gradually fell to around $75 in May ‘22.
What makes Solana unique is its underlying technology. The protocol that Solana uses is a proof-of-history system and the upshot is just how fast it is. Ethereum can complete around 30 transactions per second, while Solana is capable of sixty THOUSAND transactions per second.
This sort of gap isn’t so much as riding a bike and driving a car, but rather walking and travelling at light speed. As mentioned earlier, Ethereum is due to a significant upgrade soon, but there’s no guarantee of a smooth transition.
In terms of other uses, Solana’s blockchain also supports the issuance of NFTs (including an exclusive partnership with Michael Jordan and his son’s HEIR project), as well as DeFi platforms and the ability to build blockchain-based games. There is also Solana Pay; a platform allowing merchants to be paid in stablecoins, avoiding the high transaction fees associated with fiat currencies and old-school banking.
Solana is not perfect
In terms of the downsides of Solana, there are two worth mentioning. Firstly, it has been accused of having an uneven power structure on its blockchain. Due to the way that their protocol works, validators who hold more SOL complete a much higher percentage of transactions (netting higher gas fees). A third of all transactions are completed by just 25 of the more than 1000 validator nodes. This might not be a big deal for you but it’s not popular among those who support greater decentralization.
The second issue is the number of outages that Solana has suffered, as well as their duration. The system has gone down for 48 hours on more than one occasion, with the latest outage taking place in May 2022. This raises concerns over its overall stability and reliability. If these outages puts you off, then our next contender might be of some serious interest.
Launched in 2017, Cardano is named after 16th-century Italian polymath, Gerolamo Cardano. And that’s not all. Its cryptocurrency, ADA, gets its name from the 19th-century mathematician, Ada Lovelace. With inspirational role models like these, it comes as no surprise that Cardano’s main selling point is the company’s approach to technology.
In a world where things are often rushed out at beta to capitalize as quickly as possible, Cardano bucks the trend. This comes in the form of all their technology being based on peer-reviewed and thorough research. Which means bugs are not a common occurrence – but note, they do happen from time-to-time. Cardano also works on the eco-friendlier proof-of-stake model.
The requirement for everything to have peer-reviewed research backing could be a hindrance. Academia is slow compared to the fast-moving crypto world. The question is whether they can keep up and not be bogged down waiting to fastidiously solve every issue. It’s easy to get left behind in this industry.
One of the more common debates is weighing up Solana vs Cardano. One thing to consider is the price point of their native cryptos.
The price of Cardano’s ADA spent a lot hovering around the $0.10 mark until 2020. In 2021, it rose to a high of $3.10 in August of that year. However, it has fallen gradually and steadily, finding its way down to $0.55 at the time of writing.
Our final alternative to Ethereum is Polkadot, created by Gavin Wood and others in 2017. Coincidentally, Wood was a co-founder of Ethereum himself, giving some additional pedigree to the project.
In a nutshell, PolkaDot is all about creating interoperability between blockchains. The objective of the project is to create a truly decentralized web, where all blockchains work and communicate together.
This is a project that is both exciting and ambitious, but how does it work?
PolkaDot has two types of chains:
- Relay Chain: The central chain that manages the Polkadot system and processes all transactions.
- Parachains: The blockchains that run parallel to the framework, each designed for a specific use or connection. All able to communicate with each other.
While it is one of the leading Ethereum competitors, there are certain limitations with this technology, which is unsurprising given that it’s new and potentially revolutionary. The first issue is that there is a limited number of Parachains that the system can handle, with estimates suggesting that it’s around 100.
Secondly, who actually gets a Parachain is currently decided purely by financial means. Slots are auctioned off to the highest bidder who will have their Parachain for a lease period of a maximum of 96 weeks. It’s understandable that PolkaDot might want to capitalise on its technology but for some, this sort of insight could put a question mark over their motivations. This doesn’t make it feel like a particularly community-focused project.
Pricewise, Polkadot has enjoyed some highs over its time but DOT is another cryptocurrency that you can file under the heading of ‘volatile’.
Throughout 2020, DOT was stable and moving between the 4 to 5 dollar mark before a roller coaster of a year in 2021. It shot up to just shy of $48 in May before crashing down to $11.43 in July, then rising again to its all-time high in November of the same year, hitting $55. Since then, like most tokens in 2022, it’s taken a gradual fall over this year and finds itself between $10 and $11 at the time of writing.
Buy MCT Today
While it’s not one of the Ethereum competitors (yet!), the exciting news on our end is that our native token, MCT, is now available on PancakeSwap in the US and on our very own MyConstant app for those not in the USA. This is a big step for us and the latest one in our journey to become a complete metaverse financial platform. We will eventually release a total of 90,000,000 coins, though we will be staggering their release.
There are several benefits to holding MCT:
- Earn up to 18% APR by staking MCT
- Earn more: When you invest in our platform using MCT token, you will earn 20% more interest.
- Cut the cost of borrowing: MCT holders will enjoy a 20% reduction in borrowing fees on MyConstant.
- Pay less for NFTs: Use MyConstant token to pay for NFTs and enjoy a 50% discount on fees.
- Reduced fees on Crypto Swaps: You will be able to enjoy a 50% discount on Crypto Swaps fees.
If you’re looking to buy MCT on PancakeSwap, we have written a guide making it super simple for you!
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